Debt mutual support thread number 4 .... every journey starts with the hardest first step

[TalkinPeace]

This thread follows on from Nerf's incredibly useful
FIRST www.mumsnet.com/Talk/legal_money_matters/1969188-Can-we-have-a-support-thread-for-people-who-are-massively-in-debt
and then SECOND
www.mumsnet.com/Talk/legal_money_matters/2011878-Debt-support-thread-2?
and my THIRD
www.mumsnet.com/Talk/legal_money_matters/a2062902-Debt-Number-3-For-those-who-feel-they-are-drowning-and-want-a-way-out?msgid=48505428#48505428
threads about realising you are in and supporting each other out of debt.

I am not in debt, any more.
Here is a link to some spreadsheets that might help
www.mumsnet.com/Talk/legal_money_matters/1987219-SPREADSHEETS-for-Debt-Control-Budgeting-Mortgages-etc

and lots of people use this
YouNeedABudget

The important thing to remember is

• yesterday is as past as the Crimean War

( we will not judge how you got into debt, but we will support you on the way out )

• this is an anonymous forum

( we will not tell your employer, family or friends of the reality of your numbers )

• this thread is about supporting people through the huge mindset changes needed to come out of debt

( feel free to offload all of the feelings that drive you to want to spend, that make it hard to save and that generally make life crap at times )

Join in, bare your soul and come out the other end.
Its worth it.
You are worth it.
The long term results for you, your marriage and your children are worth it.

I have no intention of putting ANY of my money into ANY child's pension.
ISAs yes, pensions, not on your nellie

I do not even put my money into my OWN pension as I just do not trust them one iota

Okay.. so I'm trying to feel a little more positive. I'm still waiting for the shower man to ring me back. I guess I'm just going to have to put it on the credit card and swallow it and start again.

We did have a fund for house repairs but the roof went and insurance wouldn't cover it, then the shower broke (something else), then our washing machine packed up and then our front porch steps collapsed! So we have been well and truly shited on from a great height the past year. To be honest that's how we ended up in debt in the first place.

I'd like to get the overdraft paid back first (as it's costing us £27 a month) and then start a rainy day fund again.

I paid my £50 each off the cc and overdraft today. I have my weekly budget going into another account and the household account (the overdrawn one) isn't getting touched except for dhs income in and bills out (about the same amount). So when I pay something off the overdraft I can actually see it reduce. Stands at £950 today. Gulp. Two weeks till dh gets paid and then it will be back to ground zero again. And then bills for £870 come out again. So eventually it should work itself out especially as I am adding money to it as well.

Did an aldi run today. Spent £62 which I hope will last us till next Wednesday. Ds loves aldi, mostly because it's next to a really nice big park where we are so he gets to listen to music in the car for 18 miles and then run about the park for a long while first ... although I did need to use the toilet so he spent the entire time shouting "Mummeeeee had a wee wee" as I pushed him round aldi
......sigh.

Hope everyone is okay today

I Agree totally tip...i don't trout them either.
And seeing what my dad was left with after working since he was 14 was sobering :(

Trout them!?
Trust them!

ISAs all the way then TIP? I'm ashamed to say I know literally nothing about pensions! I've had a final salary non contributory pension with employer for 18yrs but that came to an end in April. Current intention is to repay debt and then put a percentage of income towards retirement every month ...

Mum4fergus
the annual personal ISA allowance is now £15000 for an adult and £3000 for a child

pile all of that into savings - 1/4 cash 3/4 stock market and over several years you'll build up quite a nest egg to draw down later in life
with the added bonus that if the shit hits the fan before you are retired you can pull it all out tax free

yes, there are not the tax breaks on paying in : but as they are worth little to basic rate taxpayers ...
and pensions are taxed when they come back out
ISAs go in taxed but come out untaxed

for kids, its a great way to build up their house deposit without tying them up till they are 75 (the pension age by the time they get there)

Duly noted! My last statement was predicting a pension of £21kpa from employer pension,then have state pension in top of that,so no quite destitute...but would love to be able to retire early

I pay into the Teacher's Pension Scheme, it's still got a good employer match and hopefully won't go tits up before I retire as it is quite a big chunk of my salary every month!

I'm worried about how big that chunk is getting Miss - feel quite twitchy about it all.

Kinky / MissA
The TPS is a defined benefit scheme. There is no risk to you AT ALL on the pension already accrued.
Its index linked and at the agreed rates on the date you made the contributions.
If the market tanks, other taxpayer foot the difference to make sure you get your agreed sum.
As time goes on they are making the costs reflect more the benefits, but that will not affect the benefits already accrued.

Anybody in a public sector scheme is a million times better off than people like me who have to pay money to the sharks and hope that the market does not tank in the next 20 years.

Final salary pensions stopped being affordable 20 years ago - when the private sector moved away from them.
The public sector knew it could tax its way out of trouble, but only for so long.

The kids you are teaching will not have access to DB schemes at all.

They are proposing to change it to a career average now, rather than final salary pension?

I don't know what this means in real terms as I still have a good 35 years left to work. I always feel like I'm never going to see retirement! The reason I'm relieved to have it is that I have a death in service payout that would help DH if I drop dead whilst still employed, which is very likely given teacher mortality rates.

Off topic - I just searched my first ever post on MN out of interest (old username). 7th November 2006. Lord, time flies. Maybe 35 years isn't so long after all .

It does indeed fly Kinky...I honestly cannot believe I turn 46 next month!!

Kinky
any contributions to date will be on final salary (so say 6 years at final salary) then the remaining 35 years at career average
BUT
career average is a better for option for all but high fliers as higher percentages are paid on lower wages
and it will still be based on what you were paid, rather than the investment returns on your contributions
so still a really, really good deal compared with a private pension

mum4fergus youngster

Thanks Talkin. ATM, mine will be the only pension in this house, so a good job it will be decent. We remain to sort out DH. I'm waiting until we get the debt clear. He is 40, so we need to get a shake on really.

I haven't been able to exercise in 9 weeks due to surgery and am flabby. I've put on 6 or 7 pounds and feel monstrously unfit and disgusting. Help me TiP!

Yes, I know this is a money thread, but when you have the font of all wisdom...

Peonies
Your best bet is to drag yourself under the wing of my dear mad friend BigChocFrenzy
www.mumsnet.com/Talk/fasting_diet/2038913-5-2-Exercise-Fitness-Thread-Number-2-Advice-and-information-for-those-following-5-2-IF-Intermittent-Fasting
Its on the 5:2 board because that is what she does, but she's a exercise guru who will have lots of ideas

first of for you I'd say have a look at the Shred by Jillian Michaels online

I agree TiP, Jillian and the Shred are amazing!

Feel a bit flat tonight as we've been to see the place we're moving into and it's much shabbier than I remember, PLUS stank of cigarettes. When I looked around it was a roasting day and they had all the windows open - looking back, obviously to hide the stale fag smell. Managed to upset DH by failing to hide my disappointment.

Am going to post in chat to see if anyone has any ideas for jazzing up a slightly tatty rental place but if anyone has ideas, I'm all ears!

trainers
go to the property threads : there are some really canny people there

Interesting about the pensions and taxes in/out

So this 3/4 stock market - do you just pick a stabe low risk fund or buy individual. I have a share account with Halifax but currently own £20 worth of M&S shares for which I get annual vouchers I've not managed to get beyond this.

Im doing very badly this month for outgoings - all termly kids things have gone out.

I am going to start putting money in my isa ASAP.
It's better off there (esp under the new rules of £15k limit per year) than in some amorphous "pot" some arsehole in London decides what to do with.
I have no idea what sort of pension Dhs is...I know he pays £250 a month which I think is a lot.
Apparently it means at retirement (65) he should get £90k lump sum and then an annuity.
Have the rules changed wrt taking money out of a pension? How old do you have to be?
Have sold more stuff on e bay...means my overdraft and the dc Xmas gifts are all done :)
I ended up with emergency surgery on nov 30th last year! So am determined to get it all done and then sit and relax on December :)

flakey
I'm in the process of setting up a shares ISA with this year's money - all the prior years are staying in cash for now as I have a decent rate - I'm planning to use a mixture of "passive tracker funds" from around the world
not stellar returns, but marginally lower risk of tanking

I'm using iWEB but get most of my ideas from MoneySavingExpert and the money pages of the papers - the Torygraph is good as it has a richer readership

badvoc
Annuities are dead as a dodo (thank goodness as you need to live 38 years retired to get your money back at current rates)

Its odd that we are talking savings on a debt thread
BUT
its good because when you all have finished paying off those debts it will make much more sense to earmark that money each month into savings rather than letting the spending creep back out of control

I need to have an emergency fund.
Definately.

I was advised by a financial advisor years ago to just keep using isas and not bother with a private pension.

How's everyone doing?

It's a fortnight until payday here.

All looking ok. Just bought some half price shoes and boots for DD from start rite sale. Budgeted for

We have about £250 to last us for the next fortnight. Needs to cover food shops and fuel. Should be fine but I bet we're scraping by come end of month!